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Hikma Pharmaceuticals (HKMPY) AI Stock Analysis
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Hikma Pharmaceuticals
(Other OTC:HKMPY)
The score is supported by very strong valuation (very low P/E and solid dividend) and a constructive technical trend (price above key moving averages with positive MACD). The main constraint is financial quality: cash flow has weakened and leverage has risen despite improving reported profitability. Earnings call commentary is broadly positive with reiterated guidance and operational progress, but includes clear H2 execution and demand/phasing risks.
Hikma Pharmaceuticals (HKMPY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $4.83B
- Dividend Yield
- 3.63%
- Average Volume (3M)
- 1,556
- Price to Earnings (P/E)
- 12.9
- Beta (1Y)
- 0.50
- Revenue Growth
- 5.61%
- EPS Growth
- 6.41%
- Country
- US
- Employees
- 9,400
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Drug Manufacturers - Specialty & Generic
Hikma Pharmaceuticals Business Overview & Revenue Model
Company Description
Hikma Pharmaceuticals PLC is a global pharmaceutical company that specializes in the development, production, commercialization, and distribution of a wide array of generic, branded, and in-licensed medicines. These pharmaceuticals are provided in va...
How the Company Makes Money
Hikma makes money primarily by manufacturing and selling pharmaceutical products across three main business segments: (1) Injectables: revenue is generated from supplying generic injectable medicines (e.g., sterile injectables) to hospital and instit...
Hikma Pharmaceuticals Earnings Call Summary
The call presented a broadly positive operational and financial picture: H1 delivered improved profitability (EBIT/EBITDA ~+8%, EPS +5%) and management reiterated full-year guidance while detailing clear operational fixes, R&D and capacity investments (injectables stabilization, U.S. manufacturing expansion, and CMO/Rx pipeline progress). Offsetting factors include geopolitical-driven stockpiling that may depress H2 volumes, the divestment of a loss-making 503B compounding business, some pricing pressure in oral Rx, and near-term variability in CMO revenues. On balance the company emphasized progress on key strategic initiatives and a constructive pipeline, but retained caution on phasing and H2 execution risks.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Hikma reiterated FY26 guidance of group revenue growth of 2–4% and operating profit of $720–770m (H1 operating profit was $405m), noting H1 was ~55% weighted for sales; H1 results showed EBIT and EBITDA up almost 8% and EPS up c.5% year‑on‑year, R&D spend and other investments are up, and management cited a 10‑year CAGR of c.8% for sales and c.5–6% for profitability. They said the injectables business is stabilised with CMO revenues expected to pick up in H2 and a major Bedford injectable capacity due in 2028, reiterated a target of 20% of Rx revenue from CMO by 2030, and described branded as able to deliver mid‑to‑high single‑digit top‑line growth with mid‑20s margins (Rx margins approaching ~20%). The buyback is almost complete (about $230m deployed, ~11–12m shares) and the 503B compounding unit is classified held‑for‑sale (expected to be sold within 12 months).
Hikma Pharmaceuticals Financial Statement Overview
Summary
Operational results are improving (revenue up across 2023–2025 and better margins in 2024–2025), but the profile is held back by weakening cash generation (operating cash flow down and free cash flow sharply weaker in 2025 with poor cash conversion vs. net income) and rising leverage from 2023 to 2025.
Income Statement
72PositiveBalance Sheet
67PositiveCash Flow
52Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.41B | 3.36B | 3.13B | 2.88B | 2.52B | 2.55B |
| Gross Profit | 1.40B | 1.44B | 1.42B | 1.41B | 1.24B | 1.30B |
| EBITDA | 889.38M | 781.82M | 727.00M | 566.00M | 691.00M | 743.00M |
| Net Income | 386.34M | 402.94M | 359.00M | 190.00M | 188.00M | 421.00M |
Balance Sheet | ||||||
| Total Assets | 5.83B | 5.67B | 5.13B | 4.68B | 4.47B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 289.00M | 354.00M | 213.00M | 229.00M | 292.00M | 450.00M |
| Total Debt | 1.96B | 1.60B | 1.31B | 1.19B | 1.28B | 846.00M |
| Total Liabilities | 3.29B | 3.06B | 2.81B | 2.47B | 2.32B | 1.91B |
| Stockholders Equity | 2.52B | 2.59B | 2.31B | 2.20B | 2.13B | 2.45B |
Cash Flow | ||||||
| Free Cash Flow | 148.88M | 162.38M | 329.00M | 404.00M | 305.00M | 409.00M |
| Operating Cash Flow | 398.53M | 359.84M | 564.00M | 608.00M | 530.00M | 638.00M |
| Investing Cash Flow | -325.62M | -394.92M | -381.00M | -333.00M | -607.00M | -238.00M |
| Financing Cash Flow | -45.38M | 58.14M | -188.00M | -337.00M | -58.00M | -287.00M |
Hikma Pharmaceuticals Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKMPY, the sentiment is Positive. The current price of 46.38 is above the 20-day moving average (MA) of 44.06, above the 50-day MA of 43.35, and above the 200-day MA of 39.66, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 68.89 is Neutral, neither overbought nor oversold. The STOCH value of 100.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HKMPY.
Hikma Pharmaceuticals Peers Comparison
Overall Rating
- HKMPY70Outperform
RDY67Neutral
LNTH65Neutral
TEVA65Neutral
VTRS63Neutral
AMRX59Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HKMPY | 70Outperform | $4.80B | 12.95 | 15.05% | 3.63% | 5.61% | 6.41% |
| RDY | 67Neutral | $11.87B | 40.24 | 7.37% | 0.59% | -10.52% | -55.45% |
| LNTH | 65Neutral | $6.56B | 23.86 | 23.27% | ― | 2.35% | 7.38% |
| TEVA | 65Neutral | $47.43B | 70.17 | 9.18% | ― | 4.40% | ― |
| VTRS | 63Neutral | $21.86B | -52.88 | -2.79% | 2.52% | 4.92% | 87.81% |
| AMRX | 59Neutral | $7.49B | 43.24 | -326.75% | ― | 9.28% | 4917.17% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HKMPY | Hikma Pharma | 46.38 | 0.63 | 1.37% | |
| RDY | Dr. Reddy's Laboratories Ltd | 14.17 | 0.83 | 6.25% | |
| VTRS | Viatris, Inc. | 19.04 | 8.87 | 87.19% | |
| TEVA | Teva Pharmaceutical Industries Limited | 42.09 | 23.59 | 127.51% | |
| LNTH | Lantheus Holdings Inc | 100.46 | 43.64 | 76.80% | |
| AMRX | Amneal Pharma | 21.51 | 10.32 | 92.14% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 06, 2026